Game Development Sector Rebate

Fuelling growth in Aotearoa’s game development sector

The second round of the Game Development Sector Rebate (GDSR) in 2025 marked another milestone in the evolution of New Zealand’s game development sector. NZ On Air received registrations from 42 studios in January and February, with a combined estimated rebate request of over $24 million. All registrants were approved to proceed to the application stage, with 41 final applications submitted between 1 April and 9 May – a notable increase from 37 in 2024.

This growth signals early momentum in the sector, with more studios reaching eligibility thresholds and scaling in response to the introduction of the rebate. Ultimately, 40 studios were approved for funding, with just over $22.4 million allocated – a strong indicator of sector confidence and capability.

The 2025 round revealed a sector on the rise:

• Recipient Growth: The number of qualifying studios jumped from 33 in 2024 to 40 in 2025 – a 24% increase.
• Revenue Trends: Sector revenue is tracking 75% higher than two years ago, outpacing a pre-rebate annual growth rate of 7%.
• In October 2024, NZGDA reported $548M in revenue (up from $434M in 2023). Based on 2025 GDSR applications, cohort revenue exceeded $710M, with NZGDA estimating total industry revenue at $759M – a 38% increase in a single year.
• 98% of revenue from GDSR recipients is export-based, bringing significant international earnings back into Aotearoa.
• Job Creation: Eligible Full-Time Equivalent (FTE) roles within the cohort grew by 20.5% year-on-year, with medium-sized studios leading the way with an average 23% increase.
• Games in Development: Eligible games in development increased 17% - from 145 in 2024 to 170 in 2025. Of these, 144 are original IP, reflecting a strong focus on new concepts and New Zealand-created stories.
• Total Eligible Expenditure: GDSR total eligible expenditure grew by 16% between 2024 and 2025, with three studios more than doubling their spend over that time period.

These figures point to a positive trajectory across revenue, employment and international reach – with the GDSR acting as a catalyst for sustainable growth.

Impact in action

Among returning applicants, medium-sized studios led the charge with an average 23% increase in FTE roles, while both large and small studios saw average growth of 10%. The rebate’s influence is already visible in studio expansion and hiring practices. One small studio more than tripled its size, while a medium studio doubled its eligible headcount.

Global context

New Zealand’s sector growth stands out internationally. While the UK games industry saw a 1.8% decline in 2024 (GamesIndustry.biz), and global revenue growth averaged just 2.1% (Newzoo), New Zealand’s estimated 75% growth over two years highlights the GDSR’s strategic impact. It positions Aotearoa as a rising force in the global games ecosystem.

Grinding Gear Games

West Auckland studio and recipient of the GDSR, Grinding Gear Games, has had another boom year with industry media reporting revenue exceeding $100m.This success has been built from their global hit online fantasy title Path of Exile, one of the top games in the world with a massive player base. While the company is now owned by Chinese firm Tencent, it has 240 staff in New Zealand. Grinding Gear Games' December 2024 release of Path of Exile 2 earned widespread acclaim and set significant records:

• 4th most streamed game globally on Twitch in December 2024, amassing 94 million hours watched - just behind Fortnite.
• On Steam, Path of Exile 2 achieved an all-time peak of 578,569 concurrent players, ranking among the platform's most popular titles.
• Over 1m people signed up to the game in early access, showing huge consumer demand.

Supported GDSR 2024 and 2025

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Splitting Point Studios

Nelson-based GDSR-supported studio Splitting Point reached a historic milestone with its Roblox title Grow a Garden. After acquiring and redeveloping an early version of the game, the studio relaunched it in March 2025. The result: over 16.4 million players in a single day—the highest one-day player count ever recorded on any platform, reportedly surpassing Fortnite.

This extraordinary success highlights the ability of small, independent Aotearoa game studios to produce globally viral, export-oriented digital content. Grow a Garden’s breakthrough has been featured in major international media, including Eurogamer and The New York Times, positioning Splitting Point as one of the most impactful indie developers in the world.

Co-founder Janzen Madsen, whose earlier Roblox games have attracted over 6.5 billion visits, was also named in the 2025 Forbes Asia 30 Under 30 in Tech list for his contributions to innovation and entrepreneurship in interactive media (see BBC story).

Supported GDSR 2025

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Runaway 

A game that focuses on ethical pet ownership by rescuing and caring for real-life bunnies found a devoted worldwide audience.  Within a year, Bunny Haven hit 1.5m downloads and scored a 4.8 (out of 5) star worldwide rating on the App Store.

Runaway, a Dunedin-based game development studio known for its nature-inspired titles, struck a chord with audiences globally through its mobile game Bunny Haven. Designed around the theme of ethical pet ownership, the game invites players to rescue, nurture and care for real-life breeds of bunnies in a tranquil, beautifully illustrated environment.

The game’s popularity was fuelled by its gentle storytelling and meaningful messages around responsible animal care, which resonated with players of all ages.

Supported GDSR 2024 and 2025

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Insight Creative

Insight Creative, a studio with offices in Auckland and Wellington, has founded a brand-new New Zealand-based Playtesting service in September 2025, marking a new chapter for game developers and creative teams in Aotearoa. Playful is designed to bridge the gap between creators and their audiences by offering structured, insightful feedback on games, apps and interactive experiences. It focuses on user experience and engagement, and aims to empower developers with the data and insights they need to refine their products and make sure they resonate with their target markets.

As the first New Zealand-owned playtesting service, Playful is poised to become a go-to resource for local game developers and creators and a pioneering initiative in the NZ games ecosystem.

Supported GDSR 2025